In my view, the perils of another burst asset bubble far outweigh the costs of another recession,

Over the 2004-05 interval, looming bond market perils appear to pose the most serious challenges for [leveraged] consumers and property markets -- possibly even resulting in a new deflation scare.

Over the 2004-05 interval, looming bond market perils appear to pose the most serious challenges for [leveraged] consumers and property markets -- possibly even resulting in a new deflation scare,

We haven't had a burst. We have barely had a leak in the bubble. And I think that you'll see come spring, next quarter, that the hole in the bubble is going to be sealed up.

It's a balloon, not a bubble. Balloons inflate and deflate; bubbles burst.

They are coming out with costs too high. They are going after the premium customer, and they believe they can get it. If they don't get the revenue, they are in deep trouble.